Which Assets Should You Spend First in Retirement?

Which assets should you spend first in retirement? When I was just a few years into my medical career, I didn’t once consider how or when I might access the money I was saving.

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[{"selector":"#anim-0a78ad45-08e6-4330-b7f1-e596306ac8b9","keyframes":{"opacity":[0,1]},"delay":0,"duration":2400,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-56976e29-0bc7-48f2-b34a-2b12bd97131b","keyframes":{"transform":["translate3d(0px, -99.4978%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":2400,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] As I’ve inched closer and closer to my own early retirement, I’ve thought a lot more about how this is going to look. I shared my drawdown strategy a while back and recently talked about the epochs of early retirement and the monies available in them. Read More

Today’s post fills in the gaps, discussing additional potential sources of spending money, including pensions, annuities, and cash value life insurance.

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Which Assets Should You Spend First in Retirement?

This includes: – Pension distributions – Interest – Dividends – Rent from investment real estate – “Retirement job” income

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Lange wisely advises you to liquidate your assets with a loss first, then assets with minimal gain, and finally assets with significant gains.

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This includes your 401(k) and IRA. We’re talking about withdrawals above and beyond your RMDs.

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This includes withdrawals from your Roth IRA and any withdrawals above and beyond the RMD in your Roth 401(k).

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Which Assets Should You Spend First in Retirement?

Which assets should you spend first in retirement? When I was just a few years into my medical career, I didn’t once consider how or when I might access the money I was saving.

Today’s post fills in the gaps, discussing additional potential sources of spending money, including pensions, annuities, and cash value life insurance.

Which Assets Should You Spend First in Retirement?

This includes: – Pension distributions – Interest – Dividends – Rent from investment real estate – “Retirement job” income

#1 After-Tax Assets Generated by Income Sources

Lange wisely advises you to liquidate your assets with a loss first, then assets with minimal gain, and finally assets with significant gains.

#2 After-Tax Assets

This includes your 401(k) and IRA. We’re talking about withdrawals above and beyond your RMDs.

#3 Tax-Deferred Assets

This includes withdrawals from your Roth IRA and any withdrawals above and beyond the RMD in your Roth 401(k).

#4 Tax-Free Assets

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